?? on Car value

[bkrelief22]

Just confused as usual...as far as the car's value on KBB is it the trade in value, or the retail value the dealer sells it for.

Thanks everyone...still learning as usual!

bk22

[Tbornetun]

We have always gone with the private party value. The trustees have never had issue with that.

[AngelinaCatHub]

We have always gone with the private party value. The trustees have never had issue with that.

I agree as you won't get as much if you trade it in, as that is wholesale. If you were looking for a car, you probably would get a better deal from a private party. Also check NADA for equivelent values. 'Hub

[bkrelief22]

Thanks all for the response and clarification.

bk22

[b_girl]

When I worked for our state government, they always used the KBB trade in value, and this was based on federal regs. Not sure if it would apply in BKs, though.

[Dirk Squarejaw]

Yeah, check NADA because sometimes I think their prices are more realistic. KBB seems to run high. My motorcycle on KBB was worth about $4300 and NADA was between $2300-$3000 depending on condition. My car was also a bit lower on NADA too which made it more upside-down.

[NowImDownInIt]

NADA is what most car dealerships use as it's more realistic. NADA is what my attorney used for my car too.

[Tbornetun]

The trustees in our areas us Kelly Blue Book. I have found that it is better to give them what they want than to have them come back at you later.
For instance, if you put a NADA value of $2500 and the trustee looks it up on KBB with a value of $3500, they will have issue with that and dig deeper.
Trustees don't make money unless if they can get it from you!

[ansky0007]

The truth is these items will be sold at dealer auction and will fetch even lower than NADA value. I would not use anything less than trade-in which is still higher than wholesale that they will get.

[Tbornetun]

The truth is these items will be sold at dealer auction and will fetch even lower than NADA value. I would not use anything less than trade-in which is still higher than wholesale that they will get.

The actual truth is that the new bankruptcy law requires you to use the property's replacement value - what it would cost to purchase the property from a retail vendor - given its age and condition when estimating its worth.

Actual Code: 11 USC 506 (a)(2)

What the trustee will get from sale of the property is irrelevant when completing your schedules.